Suraj Estate Developers IPO; Construction company IPO to begin from December 18; Key Details here

Suraj Estate Developers IPO is a public offering of shares by Rajan Meenathakonil Thomas. The IPO will open on December 18 and will close on December 20. The price band is ₹340 to ₹360 per share and the lot size is 41 shares. The issue size is ₹400. crore. The shares are expected to be listed on NSE, BSE on December 26 (^). Some additional information that you may find useful are: Revenue for FY23 grew to Rs. 305.7 crs (v/s Rs. 272.7 / Rs239.98 crs crs in FY22 / FY21). EBITDA in FY23 grew to Rs. 151.0 cr (v/s Rs131.7 cr / Rs86.6 cr in FY22 / FY21). ROE for FY23 / FY22 / FY21 at 58.18% / 77.22% / 23.62%. : (**) - based on higher price band (^) indicative date

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Key Pointers of Suraj Estate Developers IPO:

Promoters of the company are Rajan Meenathakonil Thomas Currently promoters hold 100% stake in the company. While post-equity promoters stake will be 74.95%

• Company aims to raise between Rs 400 to 400 crs through this IPO.
• The net proceeds of the issue will be utilized to 1) Repayment/Prepayment of the outstanding borrowings - Rs. 285 cr. 2) Acquisition of land or land development rights - Rs35 cr. and 3) General corporate purposes
• Anchor bidding is expected to commence one day prior to the IPO dates. Tentative anchor bidding date would be 15-Dec-23.
• Price band for the IPO has been fixed at Rs 340 to 360 per share and bid lot are in multiple of 41 shares. The implied market cap post-issue at Rs 1,531 to 1,597 crs.
• As per the tentative schedule, allotment date of this IPO is most likely on December 21 and share are expected to be listed on NSE, BSE on December 26.
• Company has direct competition in the Real Estate Construction space with listed companies includes Oberoi Realty Limited, Sunteck Realty Limited, Keystone Realtors Limited, Shriram Properties Limited, Mahindra Lifespace Developers Limited, D B Realty Limited and Hubtown Limited.
• ITI Capital, Anand Rathi Advisors has been appointed as Merchant Banker to the issue. Link Intime (India) Pvt. Ltd. has been appointed as official registrar of the issue.

About Suraj Estate Developers Limited

Suraj Estate Developers Limited

Established in 1986, Suraj Estate Developers is into development of real estate across the residential and commercial sectors in South Central Mumbai region. It is focused primarily on value luxury, luxury segments and commercial segment. Company is now venturing into residential real estate development in Bandra sub-market (Mumbai). Since incorporation, completed forty-two (42) projects with a developed area of more than1.0 million square feet in the South-Central Mumbai region. Currently thirteen(13) projects are ongoing with a developable area of 2.03 million square feet and saleable RERA carpet area of 0.60 million square feet and sixteen(16) Upcoming Projects with an estimated carpet area of 0.7 million square feet.

Revenue for FY23 grew to Rs. 305.7 crs (v/s Rs. 272.7 / Rs239.98 crs crs in FY22 / FY21). EBITDA in FY23 grew to Rs. 151.0 cr (v/s Rs131.7 cr / Rs86.6 cr in FY22 / FY21). ROE for FY23 / FY22 / FY21 at 58.18% / 77.22% / 23.62%.

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About Industry

It is a globally established fact that demographic shifts fundamentally affect the demand for real estate. India’s large population base of over 1.37 bn provides a huge domestic demand base which attracts businesses from across the world to setup their operations here. Along with rising population, India’s urbanization rate is also increasing at a fast pace. As per UNDP projections, by 2046 approx. 50% of population in India will be urban. However, rapid urbanization is expected to drive the demand for housing, offices and other real estate asset classes in the medium –long term. UNDP has projected that there will be 8 cities with a population of 10 mn & above by the year 2035 in India, highlighting the unmet housing demand.

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Source: SEBI, BSE, NSE, DRHP, Inox India, Industry Data

Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.